In the current technical preview, Azure lets you create 10 ASP.NET websites. They are given domains such as http://yourappname.azurewebsites.net. Is there currently any way to point a domain name to this website? Or are there any plans to support this in the future?
Sign in to the Azure portal using a Global administrator account for the directory. Search for and select Azure Active Directory from any page. Then select Custom domain names > Add custom domain. In Custom domain name, enter your organization's new name, in this example, contoso.com.
Go to GoDaddy portal - >Domains->Manage DNS -> Edit/Add the A Record and map the Azure web app IP as shown in the below figure. Now go to Azure portal -> custom domain of the web app service, click on Add custom Domain icon and enable the A record mapping as shown in below figure.
The answer is Yes, you can host your website on Azure. In Fact, if you are using App service F1 Free tier plan, you can host your website at free of cost.
To buy a custom domain from Azure, you need to create an app service app and go to "Custom Domains" > "Buy Domain."
Update 18-sep-2012: Windows Azure Web Sites tiers:
Read all about it in Scott Guthrie's post: Announcing: Great Improvements to Windows Azure Web Sites
Original Answer:
At the moment this is only possible for reserved instances (using a CNAME), this means it's not possible for the free sites you can create (which are shared):
You can only used custom domains in reserved mode. You can’t set a CNAME like you can in Web Roles because multiple sites share the same IP address. Switch to reserved mode and set your CNAME in the configuration and it should work.
http://blog.ntotten.com/2012/06/07/10-things-about-windows-azure-web-sites/
Microsoft confirmed that they will add support shared sites in the future:
https://twitter.com/scottgu/status/210972290719031298
Fast forward two years, it is still not possible to have CNAME directed to Azure free website. The reasons are commercial and not technical. MS says that it is not possible because multiple sites share a same IP. But don't know why I have this dedicated server at GoDaddy that has one IP but hosts 7 different domains :-) So it can't be a technical reason. Of course, if they start allowing it, nobody would want to subscribe to paid versions.
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